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~~ <br />PIONEER <br />SAND COMPANY INC. <br />January 12, 2004 <br />Annual Report <br />Permit M -1993-050 <br />Dellacroce Pit <br />1. Phase 4 mining has been 50% completed, leaving a visual buffer to <br />the South and to the East. The Eastern portion will need to be <br />completed at a later time since leaving the buffer to the East. <br />2. Mining is currently in Phase 5 and will continue in 2004. <br />P.O. Box 7650 • Colorado Springs, Colorado 80933-7650 • (719) 599-8100 <br />